Shimano bicycle sales fell 21% in the first half of the year
Shimano's bicycle parts sales fell 20.7% year-on-year in the first half of the year, and the brand said that global market inventories remain high.
As of June 30, the division's net sales were 162.594 billion yen (about 7.8 billion yuan), and operating income was 24.328 billion yen, down 42.2%. Shimano's overall net sales were 216.887 billion yen, down 17.6% from 263.250 billion yen in the same period last year.
On a quarterly basis, the bicycle division's sales in the second quarter were 86.504 billion yen, down 18.9% from the same period last year.
Shimano said: "Although people's strong interest in bicycles remains a long-term trend, the supply and demand adjustments of complete vehicles continue, and global market inventories generally remain high."
Shimano said that the retail sales of complete vehicles in the North American market have weakened, and inventory levels are "slightly" high. Retail sales in Germany and the Benelux countries are solid. Complete vehicle retail sales in Oceania and Central and South America are weak. In the Chinese market, inventory levels were normal due to the continued popularity of road bikes.
Shimano said: "Under such market conditions, demand for Shimano 105 and other road bike components was strong. In addition, Shimano Group's products were also well received, including gravel-specific components Shimano GRX."
Net sales in the fishery sector fell 6.8% year-on-year to 54.069 billion yen, and operating income fell 43.8% to 6.651 billion yen.
Shimano raised its overall full-year sales forecast by 7% to 450 billion yen from 420 billion yen previously. This will be a 5% drop from full-year sales of 474 billion yen in 2023.
US academics say Biden's tariffs on Chinese electric bikes violate US climate policy
The Biden administration has revived the Trump administration's tariffs on Chinese e-bikes. This means a 25% tariff on imported e-bikes and Chinese-made bicycle parts.
In 2026, an additional 25% tariff on Chinese-made battery packs used in e-bikes will take effect. Almost 100% of bicycles sold in the United States are made abroad, the vast majority of which are from China. The Biden administration said this is aimed at offsetting Chinese subsidies and developing domestic supply chains.
A spokesperson for the Haas Energy Institute explained: The biggest problem is that indiscriminate tariffs on Chinese clean energy products (including electric vehicles) violate U.S. climate policy and decarbonization goals. And, since there are no domestic e-bike manufacturers to help and no subsidies to strengthen the domestic supply chain, there will be no direct benefits for ordinary Americans. But there will be a downside immediately, that is, the price of e-bikes will rise. Although bicycle usage in the United States is low, e-bikes can replace cars, which ordinary bicycles cannot. E-bikes are very convenient to ride, especially uphill and long commutes.
James Sallee once said: A new 100% tariff on electric vehicles is not good for the global environment, and an overly comfortable market environment may slow down innovation among American automakers. The case for tariffs on e-bikes is even weaker, because there are no domestic manufacturers to help and no domestic supply chain to strengthen.
Since essentially all e-bikes sold in the United States are made in China, a 25% tariff on Chinese e-bikes is actually a tax on all e-bikes. The wool comes from the sheep, and e-bike companies have already announced price increases.
